Section 17.20, F.S., authorizes the Chief Financial Officer (CFO) to assign the collection of any claim due to the state to a registered collection agent if it is determined to be cost effective. Section 17.20, F.S., requires each agency to exercise ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Accounting and Auditing

RULE NO.:RULE TITLE:

69I-21.003Procedure for Processing Delinquent Accounts Receivable

PURPOSE AND EFFECT: Section 17.20, F.S., authorizes the Chief Financial Officer (CFO) to assign the collection of any claim due to the state to a registered collection agent if it is determined to be cost effective. Section 17.20, F.S., requires each agency to exercise due diligence in securing the full payment of all accounts receivable and other claims due to the state. Each agency is required to report delinquent accounts receivable as directed by the CFO to the appropriate collection agent for further action after the agency exhausts the lawful measures available to it and no later than 120 days after the date on which the account or claim was due and payable. The proposed amendments will update the rule to incorporate these changes.

SUMMARY: Rule 69I-21.003, F.A.C., is amended to provide that each agency exercise due diligence in securing the full payment of all accounts and claims due to the state. Agencies shall establish, document and maintain policies and procedures which fully explain the process of exercising due diligence. Agencies assigning accounts to a debt collection agent contracted by the CFO must complete and submit a Debt Collection Referral Form (Form DFS-A1-1829) to the debt collection agent. Agencies must regularly monitor collection activities on accounts assigned to a debt collection agent and verify the accuracy of amounts collected and the related collection fee.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an economic analysis of the potential impact of the proposed rule amendment and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 17.29 FS.

LAW IMPLEMENTED: 17.03, 17.04, 17.20 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: May 28, 2014, 2:00 p.m.

PLACE: Room B105, Fletcher Building, 101 E. Gaines Street, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Tanner Collins at [phone] or [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Tanner Collins, Financial Administrator, Bureau of Financial Reporting, 200 E. Gaines Street, Tallahassee, FL 32399-0364 or [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69I-21.003 Procedure for Collection of Processing Delinquent Accounts Receivable.

(1) Section 17.20, F.S., requires each agency to exercise due diligence in securing full payment of all accounts and claims due to the state. When determining the level of due diligence to exercise, consideration shall be given to the agency’s independent statutory authority to collect delinquent accounts; the type, age and amount of delinquent accounts; and whether or not the actions taken by the agency are reasonable and cost effective. Agencies shall establish, document and maintain policies and procedures which fully explain the process of exercising due diligence. Each agency shall be responsible for exercising due diligence in securing full payment of all accounts receivable and other claims due the State.

(2) No later than 120 days after the original due date of an account due to the state, and after exhausting other lawful measures available to the agency, each agency shall assign the account to a debt collection agent contracted by the Chief Financial Officer, unless the agency has statutory authority to collect delinquent accounts independently. Within six months after the date on which an account or other claim was due and payable, unless another period is approved pursuant to subsection (4), and after exhausting other lawful measures available to an agency, the delinquent account receivable must be reported to the Department for further action as authorized by Chapter 17, F.S., which includes possible assignment to a collection agency. A Delinquent Accounts Receivable Transmittal Form (DFS-AA-580) must be completed by the agency in as much detail as is available for each delinquent account reported. Other methods for transmitting the information required on Form DFS-AA-580 may be used if approved in advance by the Department. This prior approval is necessary in order for the Department to properly perform its duties pursuant to Section 17.04, F.S.. Delinquent Accounts Receivable Transmittal Form DFS-AA-580, revised 11-20-94, is incorporated herein by reference and is available from:

Department of Financial Services

Division of Accounting and Auditing

Bureau of Accounting

200 East Gaines Street

Tallahassee, Florida 32399-0354

Agencies will be notified, in writing, of the delinquent accounts assigned to a collection agency. Payment(s) received by an agency on accounts assigned to a collection agency must be reported, in writing, to the Bureau of Accounting within 30 days of receipt.

(3) Agencies assigning accounts to a debt collection agent contracted by the Chief Financial Officer must complete and submit to the debt collection agent a Debt Collection Referral Form (Form DFS-A1-1829, effective 01/14) unless another method of transmitting the account information is approved in advance by the Chief Financial Officer. The Debt Collection Referral Form is hereby incorporated by reference and is available at: http:/www.myfloridacfo.com/Division/AA/Forms/default.htm. An agency which has delinquent accounts receivable which it considers to be of such a nature that their assignment to a collection agency would be inappropriate may request, in writing, an exemption for those accounts. The request shall fully explain the nature of the delinquent accounts receivable and the reasons which the agency believes would preclude them from being assigned to a collection agency. The Department will disapprove the request in writing unless it is shown that a demonstrative harm to the State of Florida will occur as a result of assignment of the account to a collection agency.

(4) Agencies must regularly monitor collection activities on accounts assigned to a debt collection agent and verify the accuracy of amounts collected and the related collection fees. Agencies which have delinquent accounts receivable which are of such a nature that it would not be appropriate to transfer their collection to the Department within six months from the date they are due and payable as provided in subsection (2), may request in writing a different period of time. The request should fully explain the nature of the delinquent account receivable and include a recommendation as to an appropriate period. The Department will disapprove such requests in writing unless it is shown that a demonstrative harm to the State of Florida will occur as a result of the failure to approve the extension.

(5) The Department will review information submitted on delinquent accounts receivable, take whatever action is deemed necessary under the circumstances to collect the accounts, notify the agency of the results of the collection efforts, and recommend to the Chief Financial Officer action to be taken on uncollected accounts.

(5)(6) No change.

(7) To facilitate the transfer of moneys collected, each agency shall designate one FLAIR revenue account code to which all collected moneys will be transferred by journal transfer and notify the Department of the account code so designated. Agencies will be provided a detailed listing of amounts collected and collection fees charged, for each account. The Department will also provide instructions in accordance with General Accepted Accounting Principles on the appropriate method of recording the difference between any moneys collected and the amount of the delinquent account; i.e., treat the difference as cost of collection or provide approval for adjusting the balance of the account pursuant to Section 17.04, F.S.

Rulemaking Specific Authority 17.29 FS. Law Implemented 17.03, 17.04, 17.20 FS. History–New 1-8-86, Formerly 3A-21.03, Amended 4-12-89, 6-3-90, 11-20-94, 5-12-97, Formerly 3A-21.003, Amended__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Tanner Collins, Financial Administrator

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 23, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 21, 2014